The following information relates to the intangible assets of University Testing Services UTS:
On January UTS completed the purchase of Heinrich Corporation for $ in cash. The fair value of the net identifiable assets of Heinrich was $
Included in the assets purchased from Heinrich was a patent valued at $ The original legal life of the patent was years; there are years remaining, but UTS believes the patent will be useful for only nine more years.
UTS acquired a franchise on July by paying an initial franchise fee of $ The contractual life of the franchise is years.
Required:
Record amortization expense for the intangible assets at December
Prepare the intangible asset section of the December balance sheet.
